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| Author : | Andrew Clark, EA |
| Course Length : | Pages: 145 ||| Word Count: 66,399 ||| Review Questions: 30 ||| Final Exam Questions: 50 |
| CPE Credits : | 10.0 |
| IRS Credits : | 0 |
| Price : | $89.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Auditing - Auditing for Course Id 2375 |
| Description : | The auditor uses four phases to meet the overall objective of the audit, which is to express an opinion on the fairness with which the financial statements present fairly. Every audit requires planning, which occurs during the first of the four audit phases. Audit planning is a course that will review the audit planning process. This course will discuss the important of evaluating materiality and risk, which will impact the auditor's planned audit evidence. This course will describe how to develop a preliminary judgment about materiality and consider the most appropriate risks for each engagement. This course will review the eight steps involved in creating the audit plan. |
| Usage Rank : | 10000 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Audit
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 27-Sep-2024 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - 2375 |
| Keywords : | Auditing, Successful, Audit, Planning, cpe, cpa, online course |
| Learning Objectives : |
Course Learning Objectives At the end of this course, students will be able to:
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| Course Contents : | Chapter 1 - Auditing - Successful Audit Planning Course Learning Objectives Audit Planning Audit Risk Audit Risk Model Planned Detection Risk Inherent Risk Control Risk Acceptable Audit Risk Risks in the Audit Risk Model Assessing Acceptable Audit Risk Engagement Risk Acceptable Audit Risk Factors Step 1 - Client Acceptance Investigating Clients Evaluate Existing Clients Client Acceptance Identify the Client’s Reasons for the Audit Obtaining an Understanding with the Client Create the Audit Strategy Engagement Staffing Outside Specialists Step 2 - Understand the Client’s Business and Industry Industry and External Environment Business Operations and Processes Visit Client Facilities and View Operations Related Parties Management and Governance Code of Ethics Meeting Minutes Client Objectives and Strategies Measurement and Performance Step 3 - Assess Client Business Risk Step 4 - Perform Preliminary Analytical Procedures Analytical Procedures Types of Analytical Procedures Comparing Client Data to Industry Data Compare Client Data with Similar Prior-Period Data Compare the Current Year’s Balance with that of the Preceding Year Compare the Detail of a Total Balance with Similar Detail for the Preceding Year Compute Ratios and Percent Relationships for Comparison with Previous Comparing Actual Client Data with Client-Determined Expected Results Compare Client Data with Auditor Expected Results Common Financial Ratios Part 1 Review Questions Step 5 - Set materiality and Assess Acceptable Audit Risk Report title requirements Audit report address requirement Introductory paragraph requirements Scope paragraph requirements Opinion paragraph requirements Name of CPA firm requirement Audit report date requirement Materiality Defined Applying Materiality Materiality Preliminary Judgement Preliminary Materiality Judgment Factors Evaluating Materiality Factors Affecting Materiality Materiality Guidelines Example Estimate Misstatement Audit Risk Audit Risk Model Planned Detection Risk Inherent Risk Control Risk Acceptable Audit Risk Risks in the Audit Risk Model Assessing Acceptable Audit Risk Engagement Risk Acceptable Audit Risk Factors User Reliance on Financial Statements Client’s Size Distribution of Ownership Nature and Amount of Liabilities Financial Difficulties After the Audit Report Is Issued Liquidity Position Profits or Losses in Previous Years. Method of Financing Growth Nature of the Client's Operations Competence of Management Evaluating Management Integrity Audit Risk Decision Inherent Risk Inherent Risk Factors Nature of the Client's Business Results of Previous Audits Initial Versus Repeat Engagement Related Parties Nonroutine Transactions Recording Account Balances and Transactions Correctly Makeup of the Population Fraudulent Financial Reporting and Misappropriation of Assets Inherent Risk Decisions Assessing Inherent Risk Risk to Evidence Relationship Audit Risk for Segments Relating Tolerable Misstatement and Risks to Balance-Related Audit Objectives Measurement Limitation Evidence-Planning Worksheet Example Risk and Materiality to Evidence Summary Part 2 Review Questions Step 6 - Internal Control and Assess Control Risk Effects of Internal Auditor on Controls AU 322.9 Competence of the Internal Auditors AU 322.10 Objectivity of the Internal Auditors AU 322 .11 Audit Committee Internal Controls Vary by Organization Reliability of Financial Reporting Efficiency of Operations Compliance with Laws and Regulations AU Section 110.03 Reasonable Assurance AU Section 110.02 Auditing Standard No. 5 Inherent Limitations Internal Control Design Effectiveness of Internal Controls Standards for Financial Audits Reliability of Financial Reporting Controls Classes of Transactions Controls Auditor Responsibilities for Testing Internal Control Internal Control Components Control Environment Organizational Ethical Values and Integrity Commitment to Competence Obtaining Written Representations Management Operating Style and Practices Organizational Structure Human Resource Policies and Practices Risk Assessment Audit Risk Control Activities Segregation of duties Separation of the Custody of Assets from Accounting Separation of the Authorization of Transactions from the Custody of Related Assets Separation of Operational Responsibility from Record-Keeping Responsibility Separation of IT Duties from User Departments Transaction Authorization Adequate Documents and Records Physical Control Over Assets and Records Independent Checks on Performance Information and Communication Monitoring Understanding and Evaluation of Internal Accounting Controls Internal Control Questionnaires Update and Evaluate Auditor's Previous Experience with the Entity Make Inquiries of Client Staff Examine Documents and Records Observe Activities and Daily Operations Narratives Flowcharts Walk-through Assess Control Risk Identify Audit Objectives Identify Existing Controls Communications to Those Charged With Governance Management Letters Test of Controls Purpose of Tests of Controls Make inquiries of appropriate client personnel. Examine documents, records, and reports. Observe control-related activities. Reperform client procedures. Extent of Procedures Tests of Controls and Procedures to Obtain and Understanding Decide Planned Detection Risk and Design Substantive Tests Reporting on Internal Controls Opinion Based Upon an Audit of the Internal Control System Section 404 Reporting Requirements Audit Report on Internal Control Example Evaluation of Internal Controls Part 3 Review Questions Step 7 - Gather information to Assess Fraud Risks Introduction Fraud Definition Types of Financial Fraud Fraudulent Financial Reporting Misappropriation of Assets Asset Misappropriation Schemes Conditions for Fraud Fraudulent Financial Reporting Risk Factors Incentives/Pressures Opportunities Duration of Fraud Schemes Attitudes/Rationalization Misappropriation of Assets Risk Factors Incentives/Pressures Opportunities Attitudes/Rationalization Assessing the Risk of Fraud Professional Skepticism Questioning Mind Evaluation of Audit Evidence Information to Assess Fraud Risks Communication Among Audit Team Inquiries of Management Risk Factors Analytical Procedures Other Information Fraud Assessment Documentation Type of Organization Susceptible to Financial Fraud Government Reported Fraud Size of Organization Industry of Organization Oversight to Reduce Fraud Risks Honesty and Ethics Setting the Tone at the Top Creating a Positive Workplace Environment Hiring and Promoting Appropriate Employees Training Confirmation Discipline Evaluating the Risks of Fraud Mitigating Fraud Risks Fraud Prevention Programs Velocity of Fraud Audit Committee Oversight Responding to the Risk of Fraud Change the Audit to Address Fraud Risks Implementing Audit Procedures to Address Fraud Risks Procedures to Address Management Override of Controls Examine Journal Entries and Other Adjustments for Evidence of Possible Misstatements Due to Fraud Review Accounting Estimates for Biases Evaluate the Business Rationale for Significant Unusual Transactions Update Risk Assessment Process Fraud Risk Areas Revenue and Accounts Receivable Fraudulent Financial Reporting Risk for Revenue Fictitious Revenues Premature Revenue Recognition Manipulation of Adjustments to Revenues Signs of Revenue Fraud Analytical Procedures Documentary Discrepancies Misappropriation of Receipts Involving Revenue Failure to Record a Sale Theft of Cash Receipts Misappropriation of Revenues and Cash Receipts Inventory Fraud Risks Inventory Risk of Fraudulent Financial Reporting Warning Signs of Inventory Fraud Accounts Payable Fraud Risks Fraudulent Financial Reporting Risk for Accounts Payable Misappropriations in the Acquisition and Payment Cycle Other Areas of Fraud Risk Fixed Assets Payroll Expenses When Fraud is Suspected Detection Initial Detection of Fraud Tip Sources Median Loss and Duration by Detection Method Reporting Mechanisms Parties to Whom Whistleblowers Report Responding Misstatements Resulting from Fraud Use of Inquiry Types of Inquiry Evaluating Inquiry Responses Listening Techniques Observing Behavioral Cues Other Responsibilities When Fraud is Suspected Audit Software Analysis Expanded Substantive Testing Other Audit Implications Step 8 – Accept Client and Develop the Audit Plan Addendum - Audit Reports Part 4 Review Questions Glossary |
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Auditing for Fraud (2 Hrs)